CMS advises Telefónica Deutschland on conclusion of sustainability-linked loan

Frankfurt/Main – Telefónica Deutschland has become the first German telecommunications company to agree a sustainability-linked loan of EUR 750 million through its subsidiary Telefónica Germany GmbH & Co. OHG. One of the factors in determining the interest margin is meeting ESG criteria in relation to the environment, social issues and corporate governance, based on an independent sustainability rating compiled each year by Sustainalytics, a leading provider of sustainability assessments.

A CMS team headed by lead partners Philipp Melzer and Dr Markus Pfaff again provided support for Telefónica Deutschland in its role as an industry pioneer in the use of innovative financial products, advising on all legal aspects of the loan. CMS also advised on the previous facility for the same amount which runs until March 2023 but will be replaced prematurely by the new credit line. The transaction was issued by BNP Paribas, Commerzbank and UniCredit as bookrunners and mandated lead arrangers. UniCredit also acted as sustainability structuring agent and coordinator. CMS regularly advises Telefónica on capital market transactions and corporate finance. Examples include the company’s IPO in October 2012, the placement of three benchmark bonds (2013, 2014, 2018) and various other placements, including blockchain-based promissory note issues.

Telefónica Deutschland Holding AG, a subsidiary of Spanish telecommunications group Telefónica S.A., has been listed on the Frankfurt Stock Exchange since 2012, on the TecDAX since 2013 and on the MDAX since 2018. With some 50.1 million customer connections, the company is a leading integrated telecommunications provider. Telefónica Deutschland has more than 45 million customers in the mobile segment alone. In the 2018 financial year, the group had almost 9,000 employees and generated sales of approximately EUR 7.3 billion.

CMS Germany

Philipp Melzer, Co-Lead Partner
Dr Markus Pfaff, Co-Lead Partner
Hatice Akyel, Associate
Christopher Heckel, Associate, all Banking & Finance

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